Gold drops, other metals see gains on bailout for Greece

Most metals prices were higher Monday after the European Union reached agreement on a plan to rescue Greece from its debt woes, but gold declined as demand for a safe place to put cash diminished on the prospect of recovery for the Greek economy.

However, gold had made back some of its declines by afternoon on investor concerns that the bailout plan could cause inflation to rise, that there seemed to be few safeguards in the plan that would keep EU nations from backing away from participating in the plan, and that Spain and Portugal could soon need similar bailouts from their debt troubles.

June gold ended $9.60 lower to $1,200.80 per troy ounce in New York trade, but it had been down as low as $1,184.40 per troy ounce earlier in the session.

May silver was up 10 cents to $18.53 per troy ounce while May platinum added $26.70 to $1,691.50 per troy ounce and June palladium was $14.30 higher to $524.50 per troy ounce in New York.

Among base metals, May copper added 8 cents to $3.22 per pound in New York, while three-month copper gained $175 to $7,120 per tonne on the London Metal Exchange as hopes for relief for Greece also meant the possibility that demand for the metal used in construction and manufacturing would rise.

Aluminium, lead, nickel, tin and zinc were all higher in London trade as well.